Promoting green credit paves the way for green industrial zones

Green credit for industrial zones still faces many challenges

On the afternoon of May 9, in Da Nang city, Banking Times in collaboration with the State Bank of Vietnam, Branch Region 9, organized the Forum: "Connecting green credit - Green industrial parks".

Green Credit Connection Forum promotes green industrial park development

In her opening speech at the Forum, Ms. Le Thi Thuy Sen - Editor-in-Chief of Banking Times - said that in recent years, Vietnam has made strong and specific steps in promoting green credit. Under the direction of the State Bank, credit institutions have been creating important capital flows for sustainable development, including supporting the construction and conversion of industrial zones towards greening. Some banks have also proactively researched and updated advanced international standards on green credit, environmental - social risk management and climate risk, gradually approaching the best practices in the world.

However, promoting credit to support the formation and expansion of green industrial parks still faces many challenges, such as the lack of a national framework on green industrial parks for all parties to understand the constituent elements, thereby orienting, building, developing and converting to green industrial parks. The list of green sectors and fields has not been unified and applied nationwide, so commercial banks have difficulty in selecting, appraising, evaluating and monitoring when granting credit. Moreover, the lack of land fund and buffer zone for development are also among the difficulties in expanding green industrial parks...

Editor-in-Chief of Banking Times Le Thi Thuy Sen

“The Green Credit - Green Industrial Zone Connection Forum will exchange and discuss opportunities, challenges, as well as financial and policy solutions to promote effective cooperation between credit institutions and industrial zones in the green journey. At the same time, propose feasible and effective solutions to promote the process of “greening” industrial zones in a cost-effective and sustainable manner, ” said Editor-in-Chief of Banking Times Le Thi Thuy Sen.

At the forum, credit institutions, industrial park management boards, experts and businesses will discuss and evaluate the current implementation of green industrial park models, pointing out successes and challenges; Objectively and comprehensively evaluate the implementation of green credit for green industrial parks in Vietnam in recent times, identify bottlenecks and issues that need to be resolved; International experience and feasible solutions to develop green industrial parks, promote green credit to contribute to the industrialization and modernization of the country in a sustainable direction.

Permanent Deputy Governor of the State Bank Dao Minh Tu

Green credit must go one step ahead

In Vietnam, over 30 years since the development of industrial parks, many problems have been found in the development, planning, and economic, social, and environmental efficiency of industrial parks. Therefore, since 2014, some provinces and cities such as Da Nang, Can Tho, Ho Chi Minh City, Dong Nai... have had a policy of converting traditional industrial parks to green industrial park models.

Up to now, many industrial parks have participated and successfully implemented. Of the 290 industrial parks operating in Vietnam, about 1-2% of them are taking steps to become ecological industrial parks, green industrial parks.

However, building a green industrial park requires significant investments in synchronous infrastructure, environmentally friendly transportation systems, the use of renewable energy, advanced waste treatment, collection and recycling solutions, and green management and operation programs. These are strategic, long-term investments that pose many financial challenges for pioneering enterprises.

To support industrial parks in the greening process, in recent times, with the role of the "bloodline" of the economy, the banking industry has actively promoted green credit so that industrial parks have more resources to improve and innovate technology, and transform to sustainable green production.

Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that greening production and greening industry is an inevitable issue of industrial production and of the green economy. Without greening production, Vietnamese enterprises will have great difficulty competing with products not only domestically but also internationally, especially for export enterprises.

Green credit must go one step ahead to ensure resources to implement green industrial zones.

“To achieve the green economic goal, a huge amount of credit resources is needed. Green credit must be one step ahead, ensuring resources to achieve green goals for businesses and investment projects,” said Deputy Governor of the State Bank Dao Minh Tu, adding that since 2017, the State Bank has issued a number of policies for green credit. Up to now, the banking industry has basically had a legal corridor for this type of credit.

Under the direction of the State Bank, since 2017, only 15 credit institutions have programs related to green credit. To date, the country has 50 units with outstanding green credit balances. The average growth rate of outstanding green credit balances in the period 2017-2024 reached over 22%/year, higher than the growth rate of outstanding credit balances in the economy. Some banks have also proactively researched and updated advanced international standards on green credit, environmental - social risk management and climate risk, gradually approaching the best practices in the world.

The forum “Connecting Green Credit - Green Industrial Parks” in Da Nang emphasized the pioneering role of the banking sector in promoting green credit to support industrial parks in transforming into sustainable development models. Opinions at the forum pointed out many challenges in policy, infrastructure and legal framework, and proposed feasible financial solutions to expand green credit nationwide.

Vu Le

Source: https://congthuong.vn/thuc-day-tin-dung-xanh-mo-duong-cho-khu-cong-nghiep-xanh-386844.html